Comprehensive Problem Major League Bat Company Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains Inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to maintain records and produce measures of Inventories to reflect the July events of this company. The June 30 balances Raw Materials Inventory. $25,000; Work In Process Inventory, $8,135 ($2,660 of direct materials and $5,475 of conversion); Finished Goods Inventory, $110,000, Sales, $0: Cost of Goods Sold, $o: Factory Payroll Payable, $o, and Factory Overhead, $0. 1. Prepare journal entries to record the following July transactions and events a. Purchased raw materials for $125,000 cash (the company uses a perpetual inventory system). b. Used raw materials as follows: direct materials. $52,440, and indirect materials. $10,000 c. Recorded factory payroll payable costs as follows: direct labor, $202,250, and indirect labor, $25,000 d. Pald factory payroll cost of $227.250 with cash (ignore taxes) e. Incurred additional factory overhead costs of $80,000 paid in cash. 1. Allocated factory overhead to production at 50% of direct labor costs 4. Post entries from parts 1 and 3 to the following general ledger accounts Raw Materials Inventory Debit Acct. No. 132 Balance Date Credit Work in Process Inventory Date Debit Credit June 30 Acct. No. 133 Balance 8,135 June 30 Acct. No. 212 Finished Goods Inventory Date Debit Credit June 30 Acct. No. 135 Balance 110,000 Factory Wages Payable Debit Date Credit Balance Acct. No. 413 Sales Debit Cost of Goods Sold Debit Acct. No. 502 Balance Credit Balance Date Date Credit Factory Overhead Debit Acct. No. 540 Balance Date Credit